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04138 - I(B305431C,]
[Proposed Legislation to Require the Enactsient of Special
Leqislation to Continue Funding Any Major AcqtIsitick Whenever
Costs or Estimated Costs Increase by 50 Fercei.t or bore).
PsAD-77-lO; b-107034. Septijmber 14, IS77. 3 Fp.
Ra!pcrt to Sin. Abraham Ribicoff, Chairzan, Senate Committee on
Governmentdl Afrairs; Dly Robert F. Killer, Eeputy Ccmjltrcller
General.
Issue Area: FederaL Procurement of Gccds and Services (1900).
Coatact: Procurement and Fystems Acquisition Div.
BudqEt Function: General Government: Cther General Government
(80b).
Ccngressional Relevance: Senate Ccmmittee on Governmental
Artairs.
Authcrity: S. 1313 (95th Cong.). OLB Circular A-109.
Proposed legislation (S. 1313) would require the
kowptrlltr General to determine twice a year the cost qrcwtn
statistics on all major military and civil acquisitions and to
report to trie Congress and the head of the departs-et cr agency
concerned when he determines that the actual cost or estimated
pc ected cost of such acquisitions have resulted rr will resu.4t
_n a cost growth or 50% or more, excluding inflaticr. Upon
rec-ipt of such report, no additional funds could be obligated
or expended with respect to tne acquisition unless authcrizing
ie,..LsldtioF, were enacted oy the Congress. F:.ndings/Conclusions:
The data qathering and reporting requirements are feacutive
d4-,cv r!sponsibilities. Since departments and agencies should
bt ccmp.iinq cost data cn major acguisitio., it would place
little additional burac-n on them to report to the Ccngress wien
such data shows that costs or estirates have increased by SCA or
IIICL tacouimtnaations: The proposed leyislaticn should require
rnA+ each dtpartment and agency estahlish the kaseline ccst and
tiie currer.t estimated costs for each major acquisition, identify
the amount or cost growth attributable to inflaticn, and
tormally nctif the Congress when a cost growth or 5C% has been
ttajiied or is anticipated on each major aciuisition. For the
purposes or tolis bill, baseline estimates should re defined as
t ns .. _ iich ade based on reesonably firm designs and which are
%, supuort lor requests to the Congress for total nzcject
adtnzr.i; ations. (SC)](ViewImageLocal?handle=hein.gao/gaobaawfx0001&div=1&collection=&method=preview&ext=.png&size=3)